Issue Involved:-Whether deduction under section 54B of the Income-tax Act, 1961 can be allowed when the sale consideration of agricultural land is invested in new agricultural land purchased in the name of the assessee’s wife, and not in the assessee’s own name.

Facts (Common for Both Years)

The assessee, along with eight brothers, sold agricultural land.

The assessee’s 1/9th share of sale consideration was:

AY 2012-13: ₹55,55,555 (out of ₹5 crore)

AY 2013-14: ₹6,66,667 (out of ₹60 lakh)

No capital gain was originally offered.

Proceedings were initiated under sections 147/143(3).

The assessee claimed deduction u/s 54B, stating that the capital gains were invested in new agricultural land.

The new agricultural land was purchased in the name of the assessee’s wife.

Assessment & First Appeal Findings

Assessing Officer:

Denied deduction u/s 54B on the ground that:

The new agricultural land was not purchased in the assessee’s own name.

CIT(A), NFAC:Confirmed denial of deduction u/s 54B.

Relied on binding precedents of the Punjab & Haryana High Court.

For AY 2013-14, directed recomputation of capital gains by:Taking only the assessee’s proportionate share, and

Allowing statutory deductions (indexed cost, etc.).

Tribunal’s Observations & Findings

The sole issue was eligibility of deduction u/s 54B where:

The investment is made in the name of the wife.

The Tribunal relied on:

CIT v. Dinesh Verma (P&H HC)

Bahadur Singh v. CIT(A) (P&H HC)

Dismissal of SLP by the Supreme Court in Bahadur Singh.

The Tribunal noted that:Section 54B specifically requires the assessee to purchase agricultural land.

Purchase in the name of the spouse does not satisfy the statutory condition.

Once the jurisdictional High Court view exists and is affirmed by the Supreme Court, no contrary view can be taken.

Held:Deduction under section 54B is not allowable where the new agricultural land is purchased in the name of the assessee’s wife.

Orders of the CIT(A) were upheld.

Both appeals dismissed.

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